The Emerging Technologies in the FinTech MarketBy CIOApplications Europe
According to many analysts, the EU's General Data Protection Regulation (GDPR) will limit the number of companies for data mining, but some research also suggests that it will bring fruitful results for the FinTech industry. The benefit of GDPR is that businesses will have access to honestly sourced data which will give insightful information to find user patterns in large data sets. Some of the major technologies expected to disrupt the FinTech market include data mining, decentralized apps, and quantum computing.
With the EU’s GDPR, citizens can indubitably protect their identity with the “right to restrict their privacy.” To this end, one of the emerging technologies that can assists organizations in adhering with the stringent GDPR rules is blockchain. This electronic distributed ledger technology is capable of creating an immutable record for keeping track of the history of transactions.
Also, with GDPR in effect, FinTechs are well aware that data breaches can have adverse effects on the FinTech market. In this scenario, negative media coverage can have some adverse effects with companies losing the trust of their customers. However, GDPR is not only about data breaches. Here, anyone can exercise their “right to be forgotten” to erase all the database records. Moreover, if we include blockchain in the system, the blockchain administrator will make sure the on-chain records become meaningless.
The other disruption we will see in the collaboration of FinTech space is the significant expansion of the deployment of decentralized apps (Dapps). With blockchain as the foundation, Dapps can create innovative open-source software systems that will allow organizations to develop online tools securely and feasibly.
Other than that, Quantum computing also holds immense promise of solving the complex algorithms of FinTech, logistics, and R&D. Primarily, Quantum computing works using elemental particles such as electrons or protons and each of these particles is referred to as a quantum bit or qubit. With Quantum computing, several tasks which are not possible with traditional computing can be completed. Several industry experts have predicted that processors of 50 qubits or more can bring forth unprecedented results in the years to come.